Dynacare Laboratories admits losing the private information of more than 9,000 city workers and their families, the city contends, violating HIPAA laws.
According to reports, someone stole a company vehicle and inside, was a flash drive containing personal information about thousands of city workers and their households, including social security numbers.
City leaders say Dynacare did not adequately protect personal health information as HIPAA requires, failed to inform the city of the breach in a timely manner and made misleading comments.
The City Attorney plans to file its complaint with the federal Office of Civil Rights and is not ruling out litigation.
The city had contracted with Froedtert Community Health/Workforce Health for a wellness program for workers and their families. Dynacare partnered with Froedtert.